Korea Hydro & Nuclear Power Establishes 'Overseas Business Risk Management Committee'...Integrated Management from Contract to Execution

Comprehensive Management Plan for Restructuring Overseas Operations Established and Implemented
Enhanced Internal and External Cross-Verification Across All Project Phases

Korea Hydro & Nuclear Power has decided to establish an "Overseas Business Risk Management Committee" in order to strengthen its risk management system across all stages of overseas projects, including contracts and execution. The company also plans to reinforce internal and external cross-verification at every stage of its projects.

Korea Hydro & Nuclear Power announced on the 24th that it has established and begun implementing a "Comprehensive Overseas Business Risk Management Plan" based on these initiatives.

Kim Hoecheon, President of Korea Hydro & Nuclear Power. Korea Hydro & Nuclear Power

This plan was developed based on discussions by a company-wide task force and consultations with external experts, and consists of improvement measures in three key areas: establishing risk management governance for overseas project orders, strengthening internal and external cross-verification across all project phases, and enhancing business capabilities.

First, Korea Hydro & Nuclear Power will establish an Overseas Business Risk Management Committee to oversee risk management in overseas order projects. The committee will include relevant executives as well as external experts in business, legal, and financial fields, thereby ensuring an objective and transparent decision-making process. In particular, an external expert will be appointed as the committee chair to enable in-depth and balanced deliberation. An independent dedicated risk management department will also be formed to provide integrated management of all risks from project development and contracting to execution. Quarterly risk assessments and a separate reporting process to company leadership have been introduced to enhance internal controls and ensure early, effective response.

When calculating project costs, the company will introduce cross-verification procedures between specialized internal departments such as construction and contracts. It will also enhance the reliability of project costs and plans by leveraging experience and knowledge from domestic nuclear power plant construction. Notably, the company plans to require the participation of credible external expert organizations in the process of verifying project feasibility. Additional sector-specific reviews covering pricing, schedule, and contract terms will bolster economic evaluation across all overseas order projects and provide an objective basis for decision-making.

In addition, the company has standardized the cost categories within project expenses and designated mandatory items for preliminary estimates in subcontracting, thereby systematizing the cost estimation process to minimize the risk of cost calculation errors and budget overruns.

Korea Hydro & Nuclear Power has adopted a standardized risk management approach covering inspection items, impact assessment, and response plans, to ensure timely and appropriate responses to operational risks in overseas order projects. By integrating previously separate risk management methods by division, the company has established a consistent enterprise-wide risk response system. It has also unified work procedures that used to vary depending on the nature of each project.

Kim Hoecheon, President of Korea Hydro & Nuclear Power, said, "This comprehensive management policy focuses on systematizing risk management for overseas order projects and strengthening our operational capabilities. Going forward, we will work to prevent losses and faithfully fulfill our exemplary role as a public corporation."

This content was produced with the assistance of AI translation services.